Hotels/Restaurants/Casinos

Marriott profit rises on higher hotel room rates

Marriott International Inc. said its second-quarter earnings rose 7.3% on an increase in revenue and on a key industry metric buoyed by stronger average daily room rates.

The company, which operates its namesake hotels as well as such brands as Courtyard and Renaissance, recently has benefited from growing demand from U.S. corporate travelers. The company, however, has become increasingly dependent on international markets because hotel construction has stalled in the U.S.

Chief Executive Arne Sorenson said, "We are bullish on the remainder of 2014."

"The strong RevPAR growth in the second quarter combined with very strong group bookings for the third quarter give us the confidence to increase our full year 2014 North American and worldwide RevPAR growth guidance" by a half percentage point to between 5% and 7%, he said.

Marriott also raised its expectations for net room additions by a percentage point to growth of 6%, "based on strong development interest in our brands," Mr. Sorenson said.

Marriott reported a profit of $192 million, or 64 cents a share, up from $179 million, or 57 cents a share, a year earlier.

Excluding write-downs, litigation reserves and impacts related to Venezuela's currency devaluation and other items, adjusted earnings were 71 cents. The company expected 63 cents to 68 cents, which didn't include the one-time items.

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